(in thousands except %s and per share amounts, rounding differences may exist) | 2014 | 2015 | 2016 | |||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
pro forma | pro forma | pro forma | pro forma | pro forma | pro forma | as reported | as reported | as reported | ||||||||||||||||||||||||||||
Segment revenue: | ||||||||||||||||||||||||||||||||||||
Wealth Management (1) | $ | 304,854 | $ | 76,795 | $ | 80,834 | $ | 79,977 | $ | 82,133 | $ | 319,739 | $ | 77,291 | $ | 76,117 | $ | 80,088 | ||||||||||||||||||
Tax Preparation (2) | 103,719 | 81,068 | 30,900 | 2,875 | 2,865 | 117,708 | 88,474 | 43,991 | 3,149 | |||||||||||||||||||||||||||
Total | $ | 408,573 | $ | 157,863 | $ | 111,734 | $ | 82,852 | $ | 84,998 | $ | 437,447 | $ | 165,765 | $ | 120,108 | $ | 83,237 | ||||||||||||||||||
Segment income (loss): (3) | ||||||||||||||||||||||||||||||||||||
Wealth Management (1) | $ | 40,314 | $ | 8,647 | $ | 10,617 | $ | 11,488 | $ | 12,245 | $ | 42,997 | $ | 10,906 | $ | 9,924 | $ | 11,628 | ||||||||||||||||||
Tax Preparation (2) | 49,696 | 44,145 | 19,890 | (2,542 | ) | (4,509 | ) | 56,984 | 47,573 | 29,796 | (4,382 | ) | ||||||||||||||||||||||||
Total | $ | 90,010 | $ | 52,792 | $ | 30,507 | $ | 8,946 | $ | 7,736 | $ | 99,981 | $ | 58,479 | $ | 39,720 | $ | 7,246 | ||||||||||||||||||
Segment income (loss) % of revenue: | ||||||||||||||||||||||||||||||||||||
Wealth Management (1) | 13 | % | 11 | % | 13 | % | 14 | % | 15 | % | 13 | % | 14 | % | 13 | % | 15 | % | ||||||||||||||||||
Tax Preparation (2) | 48 | % | 54 | % | 64 | % | (88 | )% | (157 | )% | 48 | % | 54 | % | 68 | % | (139 | )% | ||||||||||||||||||
Total | 22 | % | 33 | % | 27 | % | 11 | % | 9 | % | 23 | % | 35 | % | 33 | % | 9 | % | ||||||||||||||||||
Unallocated corporate operating expenses (3) | $ | 14,235 | $ | 4,376 | $ | 4,662 | $ | 4,433 | $ | 4,279 | $ | 17,750 | $ | 4,699 | $ | 4,460 | $ | 4,907 | ||||||||||||||||||
Adjusted EBITDA | $ | 75,775 | $ | 48,416 | $ | 25,845 | $ | 4,513 | $ | 3,457 | $ | 82,231 | $ | 53,780 | $ | 35,260 | $ | 2,339 | ||||||||||||||||||
Other unallocated operating expenses: (3) | ||||||||||||||||||||||||||||||||||||
Stock-based compensation (4) | $ | 13,591 | $ | 2,889 | $ | 3,289 | $ | 3,379 | $ | 4,034 | $ | 13,591 | $ | 4,229 | $ | 3,023 | $ | 3,364 | ||||||||||||||||||
Depreciation | 3,972 | 1,144 | 1,133 | 1,168 | 1,168 | 4,613 | 1,122 | 1,127 | 1,137 | |||||||||||||||||||||||||||
Amortization of acquired intangible assets (4) | 40,740 | 10,185 | 10,185 | 10,243 | 10,238 | 40,851 | 8,983 | 8,365 | 8,346 | |||||||||||||||||||||||||||
Acquisition-related costs | — | — | — | — | — | — | — | 391 | — | |||||||||||||||||||||||||||
Operating income (loss) | $ | 17,472 | $ | 34,198 | $ | 11,238 | $ | (10,277 | ) | $ | (11,983 | ) | $ | 23,176 | $ | 39,446 | $ | 22,354 | $ | (10,508 | ) | |||||||||||||||
Unallocated other income/loss: (3) | ||||||||||||||||||||||||||||||||||||
Interest income | $ | (355 | ) | $ | (122 | ) | $ | (138 | ) | $ | (170 | ) | $ | (179 | ) | $ | (609 | ) | $ | (25 | ) | $ | (11 | ) | $ | (18 | ) | |||||||||
Interest expense (5) | 37,034 | 9,224 | 9,220 | 9,298 | 9,317 | 37,059 | 9,191 | 8,381 | 7,824 | |||||||||||||||||||||||||||
Amortization of debt issuance costs (5) | 1,753 | 454 | 467 | 482 | 491 | 1,894 | 610 | 417 | 413 | |||||||||||||||||||||||||||
Accretion of debt discounts (5) | 4,525 | 1,178 | 1,207 | 1,235 | 1,260 | 4,880 | 1,406 | 1,094 | 1,099 | |||||||||||||||||||||||||||
(Gain) loss on debt extinguishment and modification expense (6) | — | — | — | — | — | — | (3,843 | ) | 997 | 2,205 | ||||||||||||||||||||||||||
Other (income) loss, net | (285 | ) | (487 | ) | (308 | ) | (214 | ) | (281 | ) | (1,290 | ) | 175 | 38 | (70 | ) | ||||||||||||||||||||
Total | $ | 42,672 | $ | 10,247 | $ | 10,448 | $ | 10,631 | $ | 10,608 | $ | 41,934 | $ | 7,514 | $ | 10,916 | $ | 11,453 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (25,200 | ) | $ | 23,951 | $ | 790 | $ | (20,908 | ) | $ | (22,591 | ) | $ | (18,758 | ) | $ | 31,932 | $ | 11,438 | $ | (21,961 | ) | |||||||||||||
Income tax (benefit) expense: (3) (7) | ||||||||||||||||||||||||||||||||||||
Cash | $ | 2,200 | $ | 550 | $ | 550 | $ | 550 | $ | 550 | $ | 2,200 | $ | 1,064 | $ | 600 | $ | 775 | ||||||||||||||||||
Non-cash (8) | (11,902 | ) | 8,671 | (245 | ) | (8,600 | ) | (9,248 | ) | (9,422 | ) | 10,579 | 5,193 | (9,312 | ) | |||||||||||||||||||||
Total | $ | (9,702 | ) | $ | 9,221 | $ | 305 | $ | (8,050 | ) | $ | (8,698 | ) | $ | (7,222 | ) | $ | 11,643 | $ | 5,793 | $ | (8,537 | ) | |||||||||||||
GAAP income (loss) from continuing operations (9) | $ | (15,498 | ) | $ | 14,730 | $ | 485 | $ | (12,858 | ) | $ | (13,893 | ) | $ | (11,536 | ) | $ | 20,289 | $ | 5,645 | $ | (13,424 | ) | |||||||||||||
GAAP income (loss) from continuing operations per share - diluted | $ | (0.37 | ) | $ | 0.35 | $ | 0.01 | $ | (0.31 | ) | $ | (0.34 | ) | $ | (0.28 | ) | $ | 0.48 | $ | 0.13 | $ | (0.33 | ) | |||||||||||||
GAAP discontinued operations, net of income taxes (10) | $ | (30,003 | ) | $ | 3,685 | $ | 1,840 | $ | 1,597 | $ | (34,470 | ) | $ | (27,348 | ) | $ | 2,522 | $ | (19,975 | ) | $ | (40,528 | ) | |||||||||||||
GAAP impact of noncontrolling interests (9) | — | — | — | — | — | — | (144 | ) | (115 | ) | (167 | ) | ||||||||||||||||||||||||
GAAP net income (loss) attributable to Blucora, Inc. | $ | (45,501 | ) | $ | 18,415 | $ | 2,325 | $ | (11,261 | ) | $ | (48,363 | ) | $ | (38,884 | ) | $ | 22,667 | $ | (14,445 | ) | $ | (54,119 | ) | ||||||||||||
Non-GAAP net income (loss) | $ | 30,125 | $ | 37,315 | $ | 14,572 | $ | (6,961 | ) | $ | (7,976 | ) | $ | 36,950 | $ | 39,286 | $ | 23,424 | $ | (10,142 | ) | |||||||||||||||
Non-GAAP net income (loss) per share - diluted | $ | 0.70 | (11) | $ | 0.89 | $ | 0.35 | $ | (0.17 | ) | $ | (0.19 | ) | $ | 0.88 | (12 | ) | $ | 0.94 | $ | 0.55 | $ | (0.24 | ) | ||||||||||||
Outstanding Shares | 40,882 | 40,851 | 40,944 | 40,951 | 40,954 | 40,954 | 41,245 | 41,495 | 41,711 | |||||||||||||||||||||||||||
Basic shares - GAAP | 41,396 | 40,987 | 40,918 | 40,950 | 40,979 | 40,959 | 41,171 | 41,405 | 41,635 | |||||||||||||||||||||||||||
Diluted shares - GAAP | 41,396 | 41,899 | 41,936 | 40,950 | 40,979 | 40,959 | 41,610 | 42,298 | 41,635 |
(1) | On October 14, 2015, Blucora announced the acquisition of HD Vest, which closed on December 31, 2015. As part of that announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis. |
(2) | As a highly seasonal business, almost all of the Tax Preparation revenue is generated in the first four months of the calendar year. |
(3) | We do not allocate certain general and administrative costs (including personnel and overhead costs), stock-based compensation, depreciation, amortization of acquired intangible assets, acquisition-related costs, other income/loss, or income taxes to the reportable segments. The general and administrative costs are included in "Unallocated corporate operating expenses." In addition, "Unallocated corporate operating expenses" for the pro forma quarterly and fiscal year 2015 results exclude transaction costs related to the HD Vest acquisition and CEO separation-related costs. |
(4) | Includes stock-based compensation for Blucora share-based award grants to HD Vest employees and amortization of the definite-lived intangible assets identified in the HD Vest acquisition. |
(5) | Excludes interest expense and amortization of debt-related costs associated with the TaxAct 2013 credit facility and HD Vest's previous debt facility, both of which were paid off at the acquisition date, and includes similar expenses associated with the TaxAct - HD Vest 2015 credit facility that was used to finance the acquisition. |
(6) | 1Q16 gain on debt extinguishment and modification expense related to the repurchase of a portion of the Convertible Senior Notes below par value, offset by a loss on debt extinguishment and modification expense related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility, which resulted in the write-down of a portion of the unamortized discount and debt issuance costs. 2Q16 and 3Q16 loss on debt extinguishment and modification expense related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility during each of those quarters. |
(7) | Pro forma excludes historical tax expense and includes tax expense using an effective tax rate of 38.5% with anticipated cash taxes of $2.2 million per year, given expected net operating loss utilization. |
(8) | Amounts represent the non-cash portion of income taxes from continuing operations. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these deferred tax assets will expire, if unutilized, between 2020 and 2024. |
(9) | GAAP income/loss from continuing operations excludes the impact of noncontrolling interests associated with HD Vest management rollover equity ownership of 4.48%. The impact of noncontrolling interests is recorded separately and after GAAP income/loss from continuing operations. |
(10) | On October 14, 2015, Blucora announced plans to divest of the Search and Content and E-Commerce businesses. Accordingly, our financial condition, results of operations, and cash flows reflect the Search and Content and E-Commerce businesses as discontinued operations for all periods presented. On August 9, 2016, we closed on an agreement with OpenMail, under which OpenMail acquired substantially all of the assets and assumed certain specified liabilities of the Search and Content business for $45.2 million. As a result, we recognized a $21.6 million loss on sale of discontinued operations in FY 2016. |
(11) | Calculation in FY 2014 used 42,946,000 diluted shares due to non-GAAP net income. |
(12) | Calculation in FY 2015 used 41,861,000 diluted shares due to non-GAAP net income. |
2014 | 2015 | 2016 | |||||||||||||||||||||||||||||||||
(in thousands except per share amounts, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||
pro forma | pro forma | pro forma | pro forma | pro forma | pro forma | as reported | as reported | as reported | |||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||
Operating income (loss) (3) | $ | 17,472 | $ | 34,198 | $ | 11,238 | $ | (10,277 | ) | $ | (11,983 | ) | $ | 23,176 | $ | 39,446 | $ | 22,354 | $ | (10,508 | ) | ||||||||||||||
Stock-based compensation | 13,591 | 2,889 | 3,289 | 3,379 | 4,034 | 13,591 | 4,229 | 3,023 | 3,364 | ||||||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 44,712 | 11,329 | 11,318 | 11,411 | 11,406 | 45,464 | 10,105 | 9,492 | 9,483 | ||||||||||||||||||||||||||
Acquisition-related costs | — | — | — | — | — | — | — | 391 | — | ||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 75,775 | $ | 48,416 | $ | 25,845 | $ | 4,513 | $ | 3,457 | $ | 82,231 | $ | 53,780 | $ | 35,260 | $ | 2,339 | |||||||||||||||||
Non-GAAP Net Income (Loss) | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (3) | $ | (45,501 | ) | $ | 18,415 | $ | 2,325 | $ | (11,261 | ) | $ | (48,363 | ) | $ | (38,884 | ) | $ | 22,667 | $ | (14,445 | ) | $ | (54,119 | ) | |||||||||||
Discontinued operations, net of income taxes | 30,003 | (3,685 | ) | (1,840 | ) | (1,597 | ) | 34,470 | 27,348 | (2,522 | ) | 19,975 | 40,528 | ||||||||||||||||||||||
Stock-based compensation | 13,591 | 2,889 | 3,289 | 3,379 | 4,034 | 13,591 | 4,229 | 3,023 | 3,364 | ||||||||||||||||||||||||||
Amortization of acquired intangible assets | 40,740 | 10,185 | 10,185 | 10,243 | 10,238 | 40,851 | 8,983 | 8,365 | 8,346 | ||||||||||||||||||||||||||
Accretion of debt discount on Convertible Senior Notes | 3,594 | 940 | 958 | 975 | 993 | 3,866 | 963 | 885 | 901 | ||||||||||||||||||||||||||
Accelerated accretion of debt discount on Convertible Senior Notes | — | — | — | — | — | — | 1,628 | — | — | ||||||||||||||||||||||||||
Gain on Convertible Senior Notes repurchased | — | — | — | — | — | — | (7,724 | ) | — | — | |||||||||||||||||||||||||
Acquisition-related costs | — | — | — | — | — | — | — | 391 | — | ||||||||||||||||||||||||||
Impact of noncontrolling interests | — | — | — | — | — | — | 144 | 115 | 167 | ||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (400 | ) | (100 | ) | (100 | ) | (100 | ) | (100 | ) | (400 | ) | 339 | (78 | ) | (17 | ) | ||||||||||||||||||
Non-cash income tax (benefit) expense | (11,902 | ) | 8,671 | (245 | ) | (8,600 | ) | (9,248 | ) | (9,422 | ) | 10,579 | 5,193 | (9,312 | ) | ||||||||||||||||||||
Non-GAAP net income (loss) (4) | $ | 30,125 | $ | 37,315 | $ | 14,572 | $ | (6,961 | ) | $ | (7,976 | ) | $ | 36,950 | $ | 39,286 | $ | 23,424 | $ | (10,142 | ) | ||||||||||||||
Non-GAAP net income (loss) per share | $ | 0.70 | $ | 0.89 | $ | 0.35 | $ | (0.17 | ) | $ | (0.19 | ) | $ | 0.88 | $ | 0.94 | $ | 0.55 | $ | (0.24 | ) | ||||||||||||||
Diluted shares | 42,946 | 41,899 | 41,936 | 40,950 | 40,979 | 41,861 | 41,610 | 42,298 | 41,635 |
(1) | On October 14, 2015, Blucora announced the acquisition of HD Vest, which closed on December 31, 2015. As part of that announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis. |
(2) | For definitions of these non-GAAP financial measures and their relationship to our GAAP financial statements, please see Note 1 to our Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures in exhibit 99.1 to the October 27, 2016 Current Report on Form 8-K. |
(3) | As presented in the Blucora Consolidated Financial Results (unaudited) on page 2. |
(4) | We define Adjusted EBITDA and Non-GAAP Net Income (Loss) differently than we have defined it in the past, due to the impact of noncontrolling interests from the HD Vest acquisition that we began recognizing in 1Q16, the discontinued operations treatment of our Search and Content and E-Commerce businesses as determined in 4Q15, separation-related costs in connection with the departure of our chief executive officer as announced in 4Q15, and acquisition-related costs in connection with the HD Vest and SimpleTax acquisitions that we would not have otherwise incurred as part of our business operations. Acquisition-related costs include professional fees and other direct transaction costs and changes in the fair value of contingent consideration liabilities related to acquired companies. The HD Vest acquisition closed in 4Q15 and resulted in significant transaction costs. The SimpleTax acquisition included contingent consideration, for which the fair value of that liability was revalued in 2Q16. Effective with 1Q16, we also define Non-GAAP Net Income (Loss) to exclude the gain on Convertible Senior Notes repurchased, which we repurchased below par value, and the related accelerated accretion of debt discount in 1Q16. |
2015 | 2016 | |||||||||||||||
(in thousands except ratio, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | ||||||||||||
CASH: | ||||||||||||||||
Cash and cash equivalents | $ | 55,473 | $ | 67,955 | $ | 74,273 | $ | 71,165 | ||||||||
Available-for-sale investments | 11,301 | 11,642 | 7,821 | 4,492 | ||||||||||||
$ | 66,774 | $ | 79,597 | $ | 82,094 | $ | 75,657 | |||||||||
DEBT: | ||||||||||||||||
Convertible Senior Notes | $ | 201,250 | $ | 172,859 | $ | 172,859 | $ | 172,859 | ||||||||
TaxAct - HD Vest 2015 credit facility | 400,000 | 360,000 | 340,000 | 295,000 | ||||||||||||
Note payable, related party | 6,400 | 6,400 | 6,400 | 6,400 | ||||||||||||
$ | 607,650 | $ | 539,259 | $ | 519,259 | $ | 474,259 | |||||||||
NET DEBT FROM CONTINUING OPERATIONS | $ | (540,876 | ) | $ | (459,662 | ) | $ | (437,165 | ) | $ | (398,602 | ) | ||||
OTHER: | ||||||||||||||||
Add: Escrow receivable (1) | $ | 20,000 | $ | — | $ | — | $ | — | ||||||||
TOTAL NET DEBT FROM CONTINUING OPERATIONS | $ | (520,876 | ) | $ | (459,662 | ) | $ | (437,165 | ) | $ | (398,602 | ) | ||||
Last twelve months (pro forma): (2) | ||||||||||||||||
SEGMENT INCOME: | ||||||||||||||||
Wealth Management | $ | 42,997 | $ | 45,256 | $ | 44,563 | $ | 44,703 | ||||||||
Tax Preparation | 56,984 | 60,412 | 70,318 | 68,478 | ||||||||||||
99,981 | 105,668 | 114,881 | 113,181 | |||||||||||||
Unallocated corporate operating expenses | (17,750 | ) | (18,073 | ) | (17,871 | ) | (18,345 | ) | ||||||||
ADJUSTED EBITDA | $ | 82,231 | $ | 87,595 | $ | 97,010 | $ | 94,836 | ||||||||
LEVERAGE RATIO | 6.3 | x | 5.2 | x | 4.5 | x | 4.2 | x |
(1) | Amount represents consideration funded to escrow that was contingent upon HD Vest's 2015 earnings performance. The contingent consideration was not achieved; therefore, the amount was returned to the Company from escrow in 1Q 2016. |
(2) | The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis. |
2016 | |||||||||||
(in thousands, rounding differences may exist) | 1Q | 2Q | 3Q | ||||||||
Net cash provided by operating activities from continuing operations | $ | 51,727 | $ | 13,761 | $ | 4,607 | |||||
Excess tax benefits from stock-based award activity (2) | 16,865 | 10,065 | (5,561 | ) | |||||||
Purchases of property and equipment | (677 | ) | (851 | ) | (1,120 | ) | |||||
Operating free cash flow from continuing operations | $ | 67,915 | $ | 22,975 | $ | (2,074 | ) |
(1) | We define operating free cash flow from continuing operations as net cash provided by operating activities from continuing operations plus the excess tax benefits from stock-based award activity and less purchases of property and equipment. We believe operating free cash flow is an important liquidity measure that reflects the cash generated by the continuing businesses, after the purchases of property and equipment, that can then be used for, among other things, strategic acquisitions and investments in the businesses, stock repurchases, and funding ongoing operations. |
(2) | The significant majority of excess tax benefits from stock-based award activity represents the utilization of equity net operating loss carryforwards from prior years. |
2014 | 2015 | 2016 | |||||||||||||||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||
pro forma | pro forma | pro forma | pro forma | pro forma | pro forma | as reported | as reported | as reported | |||||||||||||||||||||||||||
Segment revenue | $ | 304,854 | $ | 76,795 | $ | 80,834 | $ | 79,977 | $ | 82,133 | $ | 319,739 | $ | 77,291 | $ | 76,117 | $ | 80,088 | |||||||||||||||||
Segment net revenue (1) | $ | 96,735 | $ | 23,798 | $ | 25,587 | $ | 24,752 | $ | 25,612 | $ | 99,749 | $ | 25,022 | $ | 25,094 | $ | 25,167 | |||||||||||||||||
Segment income (2) | $ | 40,314 | $ | 8,647 | $ | 10,617 | $ | 11,488 | $ | 12,245 | $ | 42,997 | $ | 10,906 | $ | 9,924 | $ | 11,628 | |||||||||||||||||
Segment income % of revenue | 13 | % | 11 | % | 13 | % | 14 | % | 15 | % | 13 | % | 14 | % | 13 | % | 15 | % | |||||||||||||||||
Segment income % of net revenue | 42 | % | 36 | % | 41 | % | 46 | % | 48 | % | 43 | % | 44 | % | 40 | % | 46 | % |
(in thousands except %s, rounding differences may exist) | 2014 | 2015 | 2016 | ||||||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | |||||||||||||||||||||||||||
pro forma | pro forma | pro forma | pro forma | pro forma | pro forma | as reported | as reported | as reported | |||||||||||||||||||||||||||||
Advisor-driven | Commission | - Transactions - Asset levels | $ | 152,344 | $ | 37,475 | $ | 39,143 | $ | 38,835 | $ | 41,490 | $ | 156,943 | $ | 36,856 | $ | 35,252 | $ | 38,962 | |||||||||||||||||
Advisory | - Advisory asset levels | 120,185 | 31,734 | 32,799 | 33,327 | 31,573 | 129,433 | 31,532 | 31,522 | 32,705 | |||||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 18,659 | 4,590 | 5,016 | 4,580 | 4,685 | 18,871 | 5,818 | 5,395 | 5,476 | ||||||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 13,666 | 2,996 | 3,876 | 3,235 | 4,385 | 14,492 | 3,085 | 3,948 | 2,945 | |||||||||||||||||||||||||||
Total revenue | $ | 304,854 | $ | 76,795 | $ | 80,834 | $ | 79,977 | $ | 82,133 | $ | 319,739 | $ | 77,291 | $ | 76,117 | $ | 80,088 | |||||||||||||||||||
Total recurring revenue (3) | $ | 236,100 | $ | 60,540 | $ | 63,409 | $ | 62,373 | $ | 61,671 | $ | 247,993 | $ | 60,069 | $ | 61,160 | $ | 62,543 | |||||||||||||||||||
Recurring revenue rate (3) | 77.4 | % | 78.8 | % | 78.4 | % | 78.0 | % | 75.1 | % | 77.6 | % | 77.7 | % | 80.3 | % | 78.1 | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | 2014 | 2015 | 2016 | ||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | |||||||||||||||||||||||||||
pro forma | pro forma | pro forma | pro forma | pro forma | pro forma | as reported | as reported | as reported | |||||||||||||||||||||||||||
Total Assets Under Administration ("AUA") | $ | 37,132,757 | $ | 37,791,025 | $ | 37,839,908 | $ | 35,625,032 | $ | 36,573,766 | $ | 36,573,766 | $ | 36,505,384 | $ | 37,233,522 | $ | 38,482,620 | |||||||||||||||||
Advisory Assets Under Management ("AUM") | $ | 9,552,876 | $ | 9,860,064 | $ | 9,899,542 | $ | 9,396,557 | $ | 9,692,244 | $ | 9,692,244 | $ | 9,592,025 | $ | 9,814,232 | $ | 10,204,448 | |||||||||||||||||
% of total AUA | 25.7 | % | 26.1 | % | 26.2 | % | 26.4 | % | 26.5 | % | 26.5 | % | 26.3 | % | 26.4 | % | 26.5 | % | |||||||||||||||||
Number of advisors (in ones) | 4,515 | 4,564 | 4,579 | 4,625 | 4,600 | 4,600 | 4,584 | 4,561 | 4,568 |
(1) | Amount represents segment revenue less advisor commission payout. |
(2) | Excludes expenses associated with non-recurring projects. |
(3) | Recurring revenue consists of trailing commissions, advisory fees, fees from cash sweep programs, and certain transaction and fee revenue. |